Inflation is always and everywhere a political phenomenon. We get inflation when the politicians spend more than they can afford…and then ‘print’ money to fill the gap. It is fundamentally a default to creditors
A Tale of Two Englands
England on Monday was closed. The streets were quiet. Few people moved about. No shops were open here in Blenheim. Instead, each had a photo of Elizabeth II in the window, with a reminder of the funeral.
Following the Leader
Looking at a long-term chart of wages, adjusted for inflation, we see that real US earnings stopped going up in the early ‘70s. Today, an average American worker earns about the same as he did in 1972. Now, that’s a Long-term Primary Trend!…a trip to nowhere over half a century.
Mr Powell: Iron Man?
Getting back to normal probably won’t happen. Too much of our economy now depends on very abnormal interest rates. As real rates go up, businesses, households, and the federal government will be unable to refinance. They will go broke, default, or, in the case of the feds, print more money.
The Ultimate Negative Feedback Loop
The Fed is expected to raise its key rate by 75 basis points (0.75%) at its meeting next week, putting more pressure on debtors. Some people are urging the Fed to go easy, fearing — correctly — that they might drive the economy into a deeper recession.
The Best Political Party of All
Our job here is not to join a party…a cause…or a movement…not to push an ideology…wave a flag or find a solution…nor to cast blame or stones…but merely to watch. And if we pay attention, and are really lucky, we might see some vague shadow, perhaps reflected in a dirty windowpane for a second or two, of what is really going on.
Death by Government
It’s another grand experiment…a ‘teachable moment’ in human history. But are humans really teachable? Aren’t the TV shows of 2022 full of the same wickedness and errors committed 2,000 years ago?
Lights Out!
Like so many Great Campaigns in history, the costs are likely to fall primarily on the poor, the weak, and the children. The price of energy could double; but the ‘deciders’ won’t have to explain to their children why they can’t afford heat.
Renewable Faith
Thoughts, like viruses, pass from person to person; some succumb, some recover, and some are barely affected. And then, when enough people get the bug, they’re likely to do something crazy.
Here Comes the Snow
More and more countries are realising that if they want to be safe from US mischief, they need to get out from under the dollar-based international money system. They are looking for alternatives and finding them
